The Senate just blew up the Trump-era AI moratorium. A 10-year ban stopping states from regulating AI was removed Tuesday, 99-1.
The fight started with Sen. Ted Cruz (R-TX) pushing the moratorium inside the “Big Beautiful Bill.” Big names backed it: OpenAI’s Sam Altman, Anduril’s Palmer Luckey, and a16z’s Marc Andreessen. They argued it would stop a messy patchwork of state rules and protect AI growth.
But Cruz’s plan hit bipartisan walls. Democrats and many Republicans said the ban would hurt consumers and let AI giants run wild. They also disliked tying AI compliance to federal broadband money. 
Sen. Marsha Blackburn (R-TN) flipped from support to opposition after last-minute talks trimmed the ban from 10 to 5 years. She pulled the plug on backing the moratorium alongside Sen. Maria Cantwell (D-WA), who co-sponsored the amendment stripping the provision.
The Senate voted almost unanimously to dump the AI moratorium.
Palmer Luckey was among those backing the moratorium.
